MDC's Crispin and Kirshenbaum Lose Accounts as Obligations to Partners Increase

(MoneyWatch)  MDC Partners' revenues are shrinking at a time when its obligations to its agency chief partners are only growing. In Q2 2009, MDC's revenues shrank 14.1 percent to $134.9 million.

Since then, Volkswagen fired Crispin Porter + Bogusky and put its $200 million account in review. That followed the loss of the $275 million Wendy's account at Kirshenbaum Bond & Partners. And there are continued rumblings about Crispin's status on Burger King.

Meanwhile, MDC reported in its Q2 presentation to analysts that it now owes $55.2 million in cash and stock to Richard Kirshenbaum, Jon Bond, Alex Bogusky et al under their earnout agreements with MDC, reported by BNET in April.

(Image: Earnouts reported by MDC Partners) That number is up from $47 million last quarter. (Adweek has a detailed story on that.)

To add to the uncertainty, Kirshenbaum is going through management change. Here's the press release:

Richard Kirshenbaum and Jon Bond, co-chairman, announced today the appointment of Lori Senecal as President, CEO and Partner of the rebranded agency kirshenbaum bond senecal + partners.

I'm sure MDC CEO Miles Nadal will find the money somewhere.

• See BNET's previous coverage of MDC:
• Burger King Ad Fight: The Worst-Case Scenario for Crispin Porter + Bogusky
• Crispin Porter & Bogusky and Kirshenbaum Bond Owed $47 Million by MDC Partners
• MDC Partners Q1: Revenue Down 10%; Profit Comes Following Mass Layoffs
• MDC Q1 Preview: Freeman Off the Books; Goodwill "Unimpaired"; Nadal Does a Curious Art Deal
• 163 Laid Off at Accent Marketing, the Agency That's a Big Chunk of MDC Partners' Revenues
• Cliff Freeman CEO Exits After Fla. Lottery Pitch Loss; Twitter Trail Tells Strange Tale
• MDC Partners Q4: Cliff Freeman Mystery Deepens
• Does MDC Partners Have a "Goodwill" Problem?